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please help meeeee..........

Mohit Sharma (CA-Final CS-Professional) (89 Points)

03 July 2010

cheque receive from debtor not deposited in bank that day so what entry should be passed

is this entry correct??

cheque in hand A/c......................Dr

To debtor A/c

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12 Replies

Anthony (AUDIT EXECUTIVE) (120 Points)
Replied 03 July 2010

The Entry will be as follows:

Bank a/c Dr.....

To Debtor a/c....

When u make a reconciliation the adjustments has to be made...

shakuntala chhangani (FCA Course co-ordinator WIRC coaching centre) (2525 Points)
Replied 12 July 2010

Anthony is absolutely right as in a/cs we pass the entry at the time of receipt of cheque and not at the time of depositing the same into bank.

Regards, CA Shakuntala Chhangani

C.A Trapti varshney (CA (ranker) B.com C.S) (125 Points)
Replied 12 July 2010

this is the correct accounting treatment

Jag Bhushan Sharma (Faculty in a B-School) (633 Points)
Replied 14 July 2010

If the cheque is not deposited on the day of receipt, sometimes the entry suggested by Mohit is passed. The reason for this is that it(cheques in hand a/c) reminds the concerned person about the cheques still to be deposited in bank. When actually cheques are deposited the following entry is passed:

Bank A/c Dr,

To Cheques in Hand A/c

Faiz Ahmed ( Article Trainee) (1731 Points)
Replied 17 July 2010

Originally posted by : Jag Bhushan Sharma
	If the cheque is not deposited on the day of receipt, sometimes the entry suggested by Mohit is passed. The reason for this is that it(cheques in hand a/c) reminds the concerned person about the cheques still to be deposited in bank. When actually cheques are deposited the following entry is passed: Bank A/c Dr, To Cheques in Hand A/c

After passing the above 2 entries(that of mohit's and sharma sir), net effect will be that as if we have recieved money from our debtor. Its a better way of disclosing.

Sandeep Yadav (CA Final ) (67 Points)
Replied 08 September 2010

Mr. jag bhushan is right

Dixit (CA Final) (2405 Points)
Replied 20 September 2010

Anthony is right

Dinesh Kumar Agarwal (Article clerk) (117 Points)
Replied 20 September 2010

in Accounting different persons may have different idea about a matter so far i am concerned i think think on regular day anthony is right while at balance sheet date if some cheques received but not deposited to the Bank Mohit is correct.

shakuntala chhangani (FCA Course co-ordinator WIRC coaching centre) (2525 Points)
Replied 21 September 2010

Friends, in financial a/c, we pass the entry at the time the cheque is received. If it is not deposited then there will be a difference between cash book and pass book which is taken care of in Bank reconciliation statements

Regards, CA Shakuntala Chhangani

(Guest)

Dear at te time of F.Y closing you are passed entry is

Cheque In Hand A/c Dr.

To Debtors A/c

But you have recd. cheque between any date before closing of f.y. you are passed entry

Bank A/c Dr.

To Debtors A/c

I agree with Anthony

V P Narasimhan (Accounts Manager) (791 Points)
Replied 13 October 2010

I agree with Mr Sharma since at the time of closing of accounts Physical Verfication will be done by Auditors for Cash and as well as Cheques (normally post dated cheques also considered).